Fuel rod tax, “A cultural rather than scientific decision”

The latest energy-related decisions taken by the German government – gradual closure of all nuclear centrals to be completed by 2022 and a new tax imposed on nuclear fuel rods – are taking their toll: shares in German power utilities E.ON and RWE AG plummeted this week.

While the 2022 phase-out was somewhat anticipated, the real shock for the energy utilities market was the the fuel rod tax: industries engaged in the sector sharply criticized the governmental announcement. Their major complaint is that the new tax seems to be a ‘cultural’ rather than scientific decision.

In a press released May 31, E.On attacked the tax calling “unlawful when it was introduced in combination with the life extension for nuclear power stations. E.ON believes that it is not in line with constitutional and European law”.

The German utility company said it expects fair compensation for the financial damages received by the decisions taken by Angela Merkel and her government.

The question is, now, if all this is going, in a not too far away future, to convince the German government change their decision – again.